September 19, 2021

Volume XI, Number 262

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September 17, 2021

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September 16, 2021

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Tax Relief Available to Mississippi Victims of Hurricane Ida

The IRS announced victims of Hurricane Ida now have until Nov. 1, 2021, to file various individual and business tax returns and make tax payments. This relief extends to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households affected by Hurricane Ida that reside or have a business in all 82 counties and the Mississippi Choctaw Indian Reservation qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 28, 2021. As a result, affected individuals and businesses will have until Nov. 1, 2021, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return due to run out on Oct. 15, 2021, will now have until Nov. 1, 2021, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.

The Nov. 1, 2021, deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2021, and the quarterly payroll and excise tax returns normally due on Nov. 1, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on Sept. 15, 2021, and calendar-year corporations whose 2020 extensions run out on Oct. 15, 2021.

The IRS disaster relief page has details on other returns, payments, and tax-related actions qualifying for the additional time.

In addition, penalties on payroll and excise tax deposits due on or after Aug. 28, 2021, and before Sept. 13 will be abated as long as the deposits are made by Sept. 13, 2021.

The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

The Mississippi Department of Revenue (MDOR) announced that it will follow the IRS extended due date of Nov. 1, 2021, to file certain income tax returns. The extension applies to any individual, corporate and franchise, partnership, and S corporation tax returns and quarterly estimated payments that were originally due between Aug. 28, 2021, and Nov. 1, 2021. The announcement noted that the federal extension does not apply to the payments for these returns because the tax payments were due on the original due date; therefore, it appears the MDOR extension also does not apply to those tax payments. 

Taxpayers that have a valid extension to file their 2020 tax returns will now have until Nov. 1, 2021, to file those returns. The extension does not apply to any other tax types or payments on prior liabilities.

© 2021 Jones Walker LLPNational Law Review, Volume XI, Number 256
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About this Author

Robert Box Tax Attorney Jones Walker Jackson MS
Partner

Bob advises clients on a broad range of corporate, partnership, and individual tax matters, and also estate planning and business succession matters.

Bob represents companies and individuals in complex transactions as well as controversies against the Internal Revenue Service (IRS) and the Mississippi Department of Revenue. He helps clients with business operations through formations, sales, and restructurings. He also has experience with the IRS and Mississippi Department of Revenue administrative process.

Bob...

601.949.4621
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